If you're going on vacation this summer, you've probably already booked some key elements, like your flight or cruise. But have you purchased travel insurance? Travel sites make it pretty easy these days to add trip protection to your purchase, but what does that fee get you, and when is the extra cost worth it?
There are generally two kinds of trip insurance:
Basic trip cancellation protection, which usually covers lost bags, reimbursements if you miss a connection, and a refund if you can't travel because you're sick or hurt.
Comprehensive travel insurance, which typically covers all that, plus any expenses related to medical or dental emergencies, disaster evacuations, and even costs associated with accidental deaths. This is a combo of travel and medical costs,
If you're going to get trip or travel insurance (the two terms are pretty much interchangeable), experts usually recommend the comprehensive kind.
Do a bit of homework as to how much risk you're even taking on so, you can make an informed decision, Maria Teresa Hart.
All-in-one policies cost about 56 percent more than basic trip insurance, according to an analysis by finance research site Value Penguin of the top 50 offerings on the market. You can expect to spend, on average, $164 for each. For those on a tight budget, that extra money can be the difference between being able to afford a fancy dinner or a nice hotel and not being able to splurge. So it pays to know when you need to spend on extra protection.
When You Don't Need It,
consider your vacation investment. Would you be OK losing that money? On a whole, if you're spending a relatively small sum on your trip, insuring that investment is probably not worth it.
For US travel
Traveling to Florida, road-tripping around the American southwest. You can probably skip any extra insurance. Travel within the US is typically a less expensive investment - and most people tend to plan for only a few weeks. Estimates the average domestic trip spans about four days and costs $576 per person.
Plus, if you have medical insurance, you're typically covered for any emergencies that occur. As always, double-check the fine print, but experts generally recommend opting out of trip insurance for short trips within the US.
If your card offers it
Check your wallet before buying any travel insurance, since some credit cards offer it as a perk. So even if you are traveling outside the country, if your credit card's coverage is thorough, you won't need to purchase anything extra.
Skip It: For flights :
It can tempt you to purchase trip cancellation insurance when a flight costs hundreds or thousands of dollars. But the basic policies are usually not worth your money to insure just your flight if you know your rights as a passenger. When you return from vacation, check with Air Help. If you're eligible, the service will work to secure you a payout (the company takes 25 percent of any compensation won). The service allows passengers to re-book canceled or significantly delayed domestic flights on any airline, starting at $19 per leg.
Skip It: Just for flexibility
Trip insurance should not be used just so you can keep your options open. Some people make that mistake; they think of it as kind a cancellation policy. That can be a waste of money, especially when it comes to your hotel. Instead of purchasing a whole comprehensive policy, opt for a hotel reservation with free cancellation right up until your stay.
When you do need It
The general rule is that you'll need to buy emergency medical or evacuation insurance when going out of the US.
Insurance is much more necessary on international versus domestic trips, particularly ones you have to plan far in advance.
Buy It: For international trips
For the most part, international vacations are more expensive than domestic trips, typically because Americans stay longer. International trips last about 12 days on average and cost $3,242 per person.
To get a good deal on an international flight, you'll need to book almost five months beforehand on average, according to Cheap Air.com
Personally, if I were paying for 70 percent to 80 percent of my trip upfront, I'd consider trip insurance, Hart says. Buy It: For medical reasons
Sunbathing on the white sand beaches of Phuket, Thailand, or hiking the Inca Trail to Machu Picchu could be a once-in-a-lifetime experience. But if something goes wrong in a faraway place, medical help may be difficult to come by, and it could be expensive, too.
Keep in mind that most people's medical insurance — except Medicare — will pay customary and reasonable hospital costs abroad, especially if you're in a major city like London.
Buy It: For cruises
Cruises hit all the major areas where comprehensive travel insurance is recommended: a big, upfront payment, international travel, and a higher risk of problems. So experts like Colleen McDaniel of Cruise Critic say it's best to insure this type of vacation with a comprehensive plan.
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